All Forum Posts by: Sandy Sawyer

Hi Chloe, if you check U-Haul's website, Houston is at the top of the list of one-way rentals! That means we are booming here in Houston! Although I'm a Realtor, I haven't had to market my rentals at all, people come to me! Closings are really dragging out because lenders are blaming Covid for dragging their feet, and title companies can't seem to keep up with the demand. Let me know if there's anything I can help you with here!

@Chloe Ralston

I think of everything like it's a slow flip. Who is your customer going to be when you go to sell your multi-unit? An investor looking for a bargain! So you have to be either looking for high cash flow while higher babysitting temporary residents and higher turnover (because tenants just don't respect your property if they don't consider it their real "home") I'm attracted to the idea of getting something in need of repairs, fix it, rent it, and sit on it for a while, meanwhile churning all profits back into, then get payday when I sell it on the retail market (I'm also a Realtor). Then take the cash earned and repeat.

@Jamal Fontenot Hey Jamal; you have to be careful buying through FHA to get a rental property because their requirement is for you to live in it yourself. Also be careful with the homestead exemption. As far as refinancing it, I learned the hard way that you need to let your title "season" for 6 months before a lender will refinance. So I suggest you sit on it and get it situated for a while and see if the market keeps rising. You might be able to get even more out of it than you could right now anyway. What part of Houston is it in?

@Aaron Gordy Hey Aaron, when I think of lumber prices, I immediately think of rising insurance rates on replacement cost as well!

Well congratulations! There's more than one way to skin a cat! (but who goes around skinning cats anyway?!)

@Michael Clay

Hi Dee, thanks for replying. I don't foresee a problem with getting an EIN for each series. But from what I've read, you can only register the master series with Secretary of State, not the baby series. And it seems that prior to last September, you could apply for a DBA locally with the county. But now the county doesn't perform this function any more. Do you know if this is true? Have you been able to get a DBA done in your area for an individual series?

I haven't seen anything here for a while on this topic. I set up my own S Corp years ago; it's really only about 3 steps. One hiccup I'm foreseeing.. In September 2019, House Bill 3609 passed, removing county filing requirements for entities that are required to register with Secretary of State (including Series LLC). But once I have registered the master series with Secretary of State, how do I get the individual series on the radar so I can go get a bank account for it? The county is no longer allowed to register the DBA for an individual series. When I ask the bank what is required to open an account, they say they want the EIN and filing number.

Adding solar panels only makes sense for your primary dwelling that you plan to live in for 10-15 years. First of all, if you include the electric but jack up the rent, you are competing with lower rents in the area and have to really sell the idea. Then, when you go to sell the property, you have to think about how much you'll still owe to pay off the panels at closing. Try jacking up the price of the house and then you are competing again with other homes, and if a buyer is interested, it has to appraise high enough. You may be stuck with this house for a long time. Appraisers will only consider the value of the panels if they have other homes in the area to compare them to. Hope this helps. (Don't do it! Ha ha)

Among the questions you need to answer are...What is the demand for a duplex in the area? Are there rentals that sit on the market a long time? How long do you plan to own this? Are you buying it for cash flow or appreciation? If it's the latter, keep in mind that your buyer is going to likely be another investor looking for a bargain. Look at this as a very slow flip. Run your numbers for both scenarios from start to finish and see what your total profit is and compare with how much cash you had to invest to arrive at your return on cash invested and divide by how many years owned. Does this duplex need major repairs anyways? If so, maybe it's time to consider since you're doing rehab anyways. I would only consider it if that were the case. Hope this helps!

I have a 72-year-old tenant that set up automatic monthly payments through her Bank of America account. Between me and her son, we helped her go online and set it up and I receive a monthly check in the mail from her bank and there's no fee for her.